Give POTUS credit for stating what is factually accurate. Healthcare spending is down. Whether that correlates with Obamacare or not is debatable. But, what the heck? At least, POTUS is stating a fact.
Some facts, care of the Institute for Policy Innovation:
- In 1961, Americans spent 43 cents of every $1 out of pocket on healthcare. That out-of-pocket spending steadily declined so that, by 2010, consumers were spending 12 cents out of pocket. During the same period, third-party payers went from spending 57 cents out of every dollar to 88 cents.
- When Obamacare was introduced in 2010, this 5-decades old trajectory of out-of-pocket spending reversed. By 2012, the out-of-pocket cost curve rose to 14.8% of total healthcare spending. In 2013, it was up to 15.2%, according to the Health Care Cost Institute.
Guess what? The new trajectory of the out-of-pocket cost curve isn't going to change. In fact, it will continue rising. Consumers will be stuck paying more and more of the cost of healthcare.
One very delicious irony: POTUS never intended any of this. Not understanding free market economics, POTUS and his Wizards of Smart thought Obamacare would reduce out-of-pocket spending by "spreading the wealth around."
So, it is true: The healthcare cost curve is bending down. But, consumers are also bending over because Obamacare is forcing them to grab their ankles, as deductibles under Obamacare have never been so high.
As the cover of the Economist noted so presciently, "This is going to hurt!"
Let the discussion begin...
To read the Institute for Policy Innovation study, click on the folowing link:
"Health Care Costs Are Declining Because You Are Paying More."